Pirin Company acquires all of the voting stock of Skoda Automotive for $40 million in cash. Skodas balance sheet accounts at the date of acquisition are listed below.

(in millions)	Dr (Cr)
Current assets	$1.2
Property, plant and equipment	10.8
Current liabilities	(2.0)
Long-term liabilities	(7.9)
Capital stock	(0.8)
Retained earnings	(1.6)
Accumulated other comprehensive income	0.3
Total	$0.0

Date-of-acquisition book values approximate fair value for all reported assets and liabilities. The following previously unreported intangibles are identified as belonging to Skoda, along with their estimated fair values at the date of acquisition (in millions):

Synergies with Pirin technologies	$2.0
Order backlogs	1.5
Technical expertise of workforce	8.0
Cost savings on future contracts	3.5
Developed technology	6.0

Acquisition cost			$40
Skodas book value			Answer
Excess of acquisition cost over book value			Answer
Excess of fair value over book value:
Order backlogs		1.5
Developed technology		6	7.5
Goodwill			$Answer

b. Prepare the eliminating entries necessary to consolidate the balance sheet accounts of Pirin and Skoda at the date of acquisition.

Enter answers in millions. Do not round answers.

Ref.	Description		Debit	Credit
(E)	Capital stock		Answer	0
	Retained earnings		Answer	0
	AOCI		0	Answer
	Investment in Skoda		0	Answer
(R)	Order backlogs		1.5	0
	Developed technology		6	0
	GoodwillI		Answer	0
	Investment in Skoda		0	Answer